Shares of Yes Bank in Thursday's intra-day trade lost as much as 5% to hit a day's low of Rs. 48.6, down 5% from Tuesday's close of Rs. 51.20 on the NSE. This drop in share price comes even as reports suggested that European entities primarily from the financial industry have evinced interest to invest an amount up to $1 billion in the private sector lender, if the RBI approves of the investment proposal.
For long there remains lack of clarity on Yes bank's $2 billion fund raising plans. The binding offer from Canada-based Erwin Singh Braich worth $1.2 billion, which roughly equates to 60% of the overall capital bank aims to raise, is also not concrete. In its board meet earlier this month, the bank said it is inclined to "favourably consider the offer of $500 million by CitaxHoldings and Citax Investment Group".
Further in respect of the binding offer from Braich bank said "The binding offer of $1.2 billion submitted by Erwin Singh Braich/SPGP Holdings continues to be under discussion."
In November, bank provided a list of potential investors who have shown interest in the bank and the list includes Capital International which committed to invest at least $120 million, Discovery Capital ($50 million), Ward Ferry, ($30 million), Erwin Singh Braich ($1.2 billion), Rakesh Jhunjhunwala ($25 million), and Aditya Birla Family Office ($25 million).
Later, news reports suggested that European entities with substantial exposure in Russia and Europe and sound financial standing have shown interest in the bank and may invest up to $1 billion.
In another development global brokerage firm Citi reduced Yes Bank target price from Rs. 50 to Rs. 46. The broking firm also decreased the bank's profit estimates for FY20 and FY21 by 4-5%.
Last, the stock of Yes Bank quoted lower by 4.79% or Rs. 2.45 at Rs. 48.75 per share on the NSE.